PHMSA Proposes to Increase Registration Fees for Certain Hazmat Transporters and Offerors, Etc.
The Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) has issued a proposed rule which would modify 49 CFR 107 by, among other things, increasing the 2007-2008 and 2008-2009 registration fees paid by persons who transport or offer for transportation certain categories and quantities of hazardous materials (hazmats), for those registrants not qualifying as a small business or not-for-profit organization.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
According to the PHMSA, the fee increase is necessary to fund the national Hazardous Materials Emergency Preparedness (HMEP) grants program at approximately $28,000,000 in accordance with the Administration's Fiscal Year 2007 budget proposal to Congress.
Proposal to More Than Double Hazmat RegistrationFees for Larger, For-Profits
The current registration fee those registrants not qualifying as a small business or not-for-profit organization for the 2006-2007 registration year is $975 (plus a $25 processing fee), according to 49 CFR 107.612. PHMSA proposes to increase this fee to $1,975 (plus a $25 processing fee) for registration year 2007-2008, and to increase the fee to $2,975 (plus a $25 processing fee) for registration year 2008-2009 and following years.
Proposed Elimination of Telephonic Expedited Registration
In addition, PHMSA proposes to amend 49 CFR 107.616 in order to eliminate its telephonic expedited registration option, which enables persons to obtain a temporary registration number. PHMSA states that with the addition of the internet registration option, the number of registrants utilizing the expedited registration option has steadily decreased to a low of less than 100 persons since January 2006.
Proposed Exception for Indian Tribes
PHMSA also proposes to amend 49 CFR 107.606 to incorporate an exception to the registration requirements for Indian tribes. As a matter of policy, PHMSA has not been enforcing the registration requirements against Indian tribes, which were specifically included among the HMEP grant recipients.
PHMSA Also Considering Penalty Increase
Although not part of its proposed rule, PHMSA states that it is also considering raising the current baseline penalty assessment of $1,000, for failing to register as an offeror or carrier of hazardous materials, for other-than-small businesses who fail to register and pay a registration fee. The assessment would be adjusted to keep it proportional to the increased registration fee. PHMSA also requests comments on raising this baseline penalty assessment.
Note: Each registration year begins July 1 and ends on June 30 of the following year.
- Written comments should be submitted by October 16, 2006.
(See ITT's Online Archives or 01/13/03 news 03011315 for BP summary of the 2003 final rule which decreased hazmat registration fees.)
PHMSA Contacts - David Donaldson (202) 366-4484
Deborah Boothe (202) 366-8553
PHMSA proposed rule (D/N PHMSA-2006-25589 (HM-208F), FR Pub 08/15/06, available athttp://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-13312.pdf)